Friday preview: US non-farm payrolls in focus

The US non-farm payrolls report will be in focus on Friday as the Federal Reserve considers the health of the labour market in determining its policy measures.

The Labor Department is expected to reveal US employers added 180,000 jobs in June, compared to just 38,000 in May. The unemployment rate is forecast to rise to 4.8% in June from 4.7% in May.

Average hourly earnings are estimated to have increased 2.7% year-on-year and 0.2% month-on-month in June, compared to a respective 2.5% and 0.2% gain in May.

The weak May jobs report played a part in the Fed’s decision to leave interest rates unchanged in June. The minutes of the 14-15 June policy meeting, released on Wednesday, highlighted concerns about a slowdown in hiring and uncertainties leading up to Britain’s 23 June European Union referendum.

Policymakers said the implications of recent employment data were seen as “uncertain” even though they generally agreed that it was advisable to avoid overreacting to one or two labour market reports, the minutes revealed.

“We see the May jobs report more as a 'one off' rather than a new normal, although it magnifies the signal that job growth has indeed slowed lately,” said Danske Bank.

”We expect job growth to slow in the second half of 2016, as we have a significantly tighter labour market now than one year ago and also should see some negative Brexit effects, particularly on manufacturing employment.”

Danske expects the Fed will stay on hold for the next 12 months, with the first hike in June 2017.

Friday 08 July

INTERIM DIVIDEND PAYMENT DATE
Alternative Networks, Britvic, Connect Group, Hargreave Hale AIM VCT 1

QUARTERLY PAYMENT DATE
Real Estate Credit Investments PCC Ltd Pref Shs , Regional REIT Limited

INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Balance of Trade (GER) (07:00)
Consumer Credit (US) (20:00)
Non-Farm Payrolls (US) (13:30)
Unemployment Rate (US) (13:30)

GMS
Cogenpower

SPECIAL DIVIDEND PAYMENT DATE
B&M European Value Retail S.A. (DI), Marshalls

AGMS
Amedeo Air Four Plus Limited, Aveva Group, Bonmarche Holdings, daVictus, Oxford Technology 2 VCT, Oxford Technology 3 VCT, Oxford Technology 4 Venture Capital Trust, Oxford Technology VCT, Value and Income Trust

UK ECONOMIC ANNOUNCEMENTS
Balance of Trade (09:30)

FINAL DIVIDEND PAYMENT DATE
Aberdeen Japan Investment Trust , Booker Group, Brammer, Christie Group, Good Energy Group, Harvey Nash Group, Inspired Energy, Judges Scientific, London Security, M&C Saatchi, Marshalls, Restore, S&U, Sainsbury (J), Stobart Group Ltd., TLA Worldwide , Triple Point Income VCT C